History of Kirloskar Brothers Ltd. ^ ------ ■
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Chapter I L I L I L History of Kirloskar Brothers Ltd. ^ ------------------------ -------------- - _ ■ . CHAPTER III H I S T O R Y O F KIRLOSKAR BROTHERS LIMITED - - - - - - - - - - - - - (1) Although this chapter primarily refers to the history of Kirloskar Brothers Limited, it also makes some passing references to the development of the House of Kirloskars. (2) It is very difficult to separate the history of Kirloskar Brothers from the biography of Laxmanrao and Shantanurao, Their leadership has helped the advancement of Kirloskar Brothers Limited. Therefore, this chapter deals with major events in the life of Laxmanrao and Shantanurao. (3) The personal observations and conclusions of the researcher are also stated whenever found necessary. (4) Alongwith the need for the establishment of Kirloskar Brothers Limited, the researcher has also stressed the philosophy with which the Kirloskar Brothers Limited has been working since its inception. 3.1 THE BEGINNING OF KIRLOSKAR BROTHERS In the year 1888, Laxmanrao Kashinath Kirloskar started a shop in (16) partnership with his elder brother Ramuanna Kashlnath Klrloskar for selling imported bicycles on commission. The establishment of this shop was the beginning of the History of Klrloskar Brothers. Both, Laxmanrao and Ramuanna, were working as school teachers: at the same time they ran the bicycle shop. Their salaries as school teachers were too inadequate to meet the financial needs of their joint family. Therefore, they started the bicycle shop which brought in an additional income. Thus, the name of Klrloskar Brothers was first made popular as the bicycle merchants. 3.2 CONTEMPORARY BUSINESS ENVIRONMENT In order to understand some outstanding features of Kirloskar Brothers, it is worthwhile to study the social, political and economic conditions of those times that served as a background for the establishment of PQrloskar Brothers Limited. 3.2 (A) SOCIAL ENVIRONMENT (1) About 100 years ago, when Kirloskar Brothers was established, there existed an orthodox social structure. It was a closed society with a number of castes, creeds and religions. People belonging to certain castes were supposed to perform certain activities only. e.g. a Brahman by caste was (17) supposed to learn religious scriptures and become a priest or teacher. It was supposed to be the caste of intellectual people, pursuing intellectual professions. On the other hand, a Vaishya by caste was supposed to engage in business affairs and in trade and commerce. A Brahman entering into business or trade was looked down upon. People were afraid of violating these social norms and traditions. Laxmanrao, was a Brahman and his father Kashinathpant was a Vedant-Pandit. Therefore, the society also expected Laxmanrao to follow in the foot steps of his father. However, he broke away from the traditions and entered the field of engineering and technology. This was something extraordinary in the personality of Laxmanrao. (2) India was under the British rule. Many leaders and patriots like Bal Gangadhar Tilak, Vasudeo Balwant Phadke, Dadabhai Nowarojee, Bipinchandra Pal, Kudhiram Basu, Madanlal Dhingra, V.D.Savarkar, were working hard to bring about a political and social awakening among the people of the country. They appealed to the people to arise, awake and work for the overthrow of the British empire. They urged the people to be Free Indians and Buy Indian goods. In such an environment young Laxmanrao was deeply influenced by the freedom movement and wanted to contribute to it in his own way. Throughout his career as an entrepreneur, it can be easily observed that he gave stress only on the production of import substitute items. He was very particular about the quality of products that he manufactured. This was because he had (18) to face the competition of British products in the market. He wanted to prove that his products were superior to those of foreign countries. In that sense it will not be wrong to say that Laxmanrao Klrloskar was also a freedom fighter. Laxmanrao knew well that the British had not only politically subjugated India but also economically, industrially and commercially. Thus,in short it can be observed that the contemporary Indian society : (i) was stagnant and orthodox, (ii) was under the British rule and (ill) wanted to arise, awake and take some action to throw away the British regime, but was not finding the way out. 3.2 (B) POLITICAL ENVIRONMENT (1) THE BEGINNING OF BRITISH REGIME The East India Company was established in 1600 in order to engage in trade and commerce with India. During the 17th Century the English established their commercial centres at different places such as Bombay, Surat, etc.. After capturing the key centres on Indian coast, it became easier for them to expand their business in India. For the purpose of expanding their trade and commerce they thought it necessary to have their control on the Indian territories. The only way to do this was to enter into the Indian political scene. (19) In 1707-98. Lord Wellislee was appointed the Governor General of India. His main objective was to bring the whole of Indian territory under British rule. In those days, different rulers in India were fighting among themselves for territorial control. They were not united and organised. It was therefore, possible for the English to take full advantage of these internal rivalries and quarrels. (2) EXPANSION OF BRITISH POWER The English had their typical way of extending their power in India. After defeating any of the Indian princes they used to impose following terms and conditions of dealing with the British Government : (a) That the Indian ruler should take the help of English armed forces for his defence. (b) For expenses, the ruler should part with a piece of territory to the English Government. (c) That he must keep the English resident at his court. (d) That he should not take any decisions without the prior permission of the English Government. (e) That he should discontinue his relationship with any of the other rulers. (20) The sole objective and purpose of this system was the complete subjugation Indian princes and rulers. (3) FREEDOM STRUGGLE In 1799, the English defeated Tipu Sultan and in 1818, they annexed the domination of Peshwas to the British empire. The end of Tipu Sultan and the Peshwaiee paved the way for further conquest in India with little resistance. During 1818 to 1857, the English had captured practically the whole of India. In 1857, a large number of princes rulers raised a revolt against the English which was crushed by the English Government. After the freedom struggle of 1857, no such united effort was made by Indians for a long time. However, after 1857 and before 1947. there were some sporadic efforts by the freedom fighters like Vasudeo Balwant Phadke, Chaphekar Brothers, etc. Among these patriots, Bal Gangadhar Tilak was very active in awakening the people of India to fight against the English rule. In those days he used to write fiery articles in Daily Kesari on the contemporary political scene and on the Indian Society which had fallen in a torpor. Mass disobedience agitation and, defiance of English Government and Swadeshi movement were the ways of freedom struggle in those days. 3.2 (C) ECONOMIC ENVIRONMENT (1) DROUGHTS - A SERIES OF NATURAL CALAMITIES Only the period between 1850 and 1967 was a good period for (21) the national economy. India is an agricultural country, where farmers have to depend on rains for good harvest. Rains in India are uncertain. In 1876-77, 1895-96, 1900-1901, 1907-1908 and 1918-1919, Indian economy suffered heavily due to drought. (2) FUNDAMENTAL CHANGES IN THE NATIONAL ECONOMIC SYSTEM Indian economy was a village economy. The villagers were self suflicient and many artisans who were skilled in carving on silver and ivory, producing silk cloth, handicraft, etc. earned their bread and butter by following their trades. Some of the skilled workers worked under the patronage of Kings and Maharajas who ruled different states. When the English Government adopted the policy of dissolving their dominations, many craftsmen and artisans lost their Jobs and became unemployed. The village under English regime was being used as a source of raw- material and ready market for selling the products manufactured by British Industries. No encouragement was given to the small scale and cottage industries by the British Government. The Britishers were industrially advanced. They used to produce goods of finer quality compared to the goods produced by Indians. The Indian consumers were attracted to such sophisticated products very easily. In order to expand their trade in India, the Britishers started constructing the required infrastructural facilities such as railways, ports, roads, etc.. The craftsmen (22) who had become unemployed due to the dissolution of princely states got jobs in British railways and on ports. Under the British rule, the Britishers did not only extend their empire but also captured the Indian markets. They exploited Indians and carried away tremendous wealth to Great Briton. (3) NATIONAL MOVEMENT FOR ECONOMIC AWARENESS Different leaders like Loakmanya Tilak, Swantantrya Vir Savarkar, Mahatma Gandhi, were making the Indian people aware of their exploitation. The Swadeshi movement had begun. They appealed the Indian people to be Indians and buy Indian products. The articles written by Loakmanya Tilak in Kesari are revealing enough of the contemporary efforts by the leaders for economic awareness. A few examples of such articles are : In these articles Tilak pointed out that the competition from foreign goods to the indigenous goods, lack of vocational training, inadequate finance, lack of credit-worthiness and absence of aids to trade (banking, transport, etc.) were some of the major reasons for India's poor showing on Industrial front. He exhorted the Indian people to enter in the field of industiy.